Wednesday, May 15, 2013

US Government Begins BitCoin Crackdown

The US government has been gradually encroaching on the independence and freedom of the virtual currency.

This week, the government escalated.

The feds took action against Mt. Gox, the world's leading Bitcoin exchange.

Many people use Dwolla, a PayPal-like payment network, to send dollars to their Mt.Gox accounts.

They then use those dollars to buy Bitcoins.

On Tuesday, Dwolla announced that it had frozen Mt. Gox's account at the request of federal investigators.

It's the first federal action against the currency.

The asset seizure was initiated by Homeland Security Investigations (which among other things is responsible for enforcing the laws associated with money laundering and drug smuggling).